EMScommercial
5138 Posts |
 Posted - 05/22/2008 : 09:45:31 AM
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I was flipping through the channels last night and stopped on CNBC to see Mad Money.... Cramer had Sen. Dodd (D) on the show and below is basically their conversation....
from http://www.thestreet.com/funds/madmoneywrap/
Cramer welcomed Connecticut Sen. Chris Dodd to the show to discuss the anti-foreclosure bill working its way through Congress. The bill, which now heads to the full Senate for a vote, would offer federal assistance to homeowners via the Federal Housing Authority (FHA), letting them refinance their homes at affordable rates.
Cramer called the bill "the beginning of the end of the housing crisis," and commended Dodd for his involvement. Dodd explained that under the plan, at-risk homeowners would simply need to contact their banks and initiate the process. Once qualified, the FHA would allow for refinancing at reasonable rates and back the loans so they get approved in a timely fashion.
Dodd also explained that the bill reforms the country's affordable housing program and offers reforms to both Fannie Mae FNM and Freddie Mac FRE. One thing not included in the bill is a $600 billion tax credit for home builders, which Dodd said he didn't support.
According to Dodd, between 9%-12% of all the homes in the U.S. are now in a situation where debt exceeds the value of the home. He said that the last thing homeowners want are foreclosures on their street holding down home prices. "The heart of the problem is housing, and the heart of the housing problem is foreclosures," said Dodd.
When asked why it took so long to act on the housing crisis, Dodd explained that many in Congress shy from the word "bailout", but he explained that this bill isn't a bailout, but rather a much needed and long-overdue assistance for the victims of what he called rampant mortgage fraud. |
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